Today, what I really want to talk about is your marketing. Everybody gets enamored with the front end marketing. We need new patients. But do you really need it?
We PTs did some recent research in 2018. As per research, there are 75% of patients who don’t complete their plan of care. This is a huge number. That means three-quarters of the people who you bring in the front door do not complete their plan of care. They don’t stay or finish. It can’t be that good if they left.
A high percentage of our patients do not complete their plan of care and yet, our main focus is on the front end marketing. Another interesting stat about this is that 80% of your business, whether PT or not, comes from 20% of your past customers.
Looking at these numbers, most of our new patients who we’ve worked so hard to get leave. Maybe it’s time to start looking a little bit more to your systems. Take a step back and look at the systems that you can create to make or reach the 20%.
If you break the numbers by percentage basis, for each percent of your past customers who are happy, you get a 4% bump in your business. Just by increasing the number of your past customers who are happy, you can bump up the percentage of your business. Maybe we shouldn’t focus so hard on the front end.
Don’t get me wrong. Front end marketing is important, but the return of investment is nothing compared to increasing the percentages.
20% comes from new marketing. If you get a 10% bump on that number, you’ll get an increase of 2%. It literally costs you 5 times as much to get a new patient. Your past customers have the highest return of investment or ROI. With your past customers, your ROI is over 5 times higher.
This is something that we really need to talk about and need to focus on. There’s a huge thing that’s happening here that nobody is getting this. For some reason, nobody is getting that all of your new patients are coming from your past patients.
All of your business is predicated on your past business. What we’ve done is we started looking at this. We’ve been working for 6-7 years on really dialling the system in and creating something that will engage the patients.
This is ultimately about building a relationship. With this, we created the Patient Relationship Management Software. We are all familiar with CRM or Customer Relationship Marketing Software. It’s primarily email that we send to them and they open it. If nobody opens it, then nobody reads it.
So what do we do? We try to be creative such as using fancy taglines and better subject lines in our email. Maybe we can squeak up from 35% to 40% open rate.
There’s a better way. You‘ve got to get ahead of that old marketing thing. You can’t just jump to that old marketing thing and expect it to work for you. That email marketing is not really effective. Although it’s more effective than doing nothing, it’s way behind as compared to texts and ringless voice calls.
In all of that, you have to identify the right patients to ask. If you ask the wrong patient, it’s actually off. What you need is a system.
If you belong to the Drop the Physical Therapy Drop Offs group, you kind of seeing the bits and pieces of the overall thing. You’re seeing that Net Promoter Score working in and identifying happy patients and teaching you how to identify unhappy patients and how to turn them into happy patients.
In result of that, the percentage of happy patients jumps up. That increase turns to bump in new business thus, increase in bottomline revenue. I can’t even express enough how this is everything in your business.
All the front end marketing, Facebook ads, and all other things that you do to make sure that you’re on the top and your SEOs are great, they are all important. However, they are less than nothing as compared to making your patients happy, which will bring you 5 times more of gain in revenue. We will talk a little bit more specifically on how you can do this.
First is to engage with your potential customers. Do not wait for them to walk in the door before you start building a relationship. Engage with them before the first visit. We can’t wait for them to shock us.
You’ve got to start on that first phone call. If you don’t slow that first phone call down and start having a relationship with them, you’re going to have an increase in cancellation, no-shows, drop off rate, and number of people who will don’t even show up for the evaluation.
Second is once they’ve committed, you have to ensure that they’re in the right place. You can either use email or text for this. Emails work if you frame them and tell the patient that you’re sending an email together with something that he/she needs so that they’re going to hop in and take a look to see what you’ve sent to them.
If you ask them if they get your email, they’re more likely to open your next email. You can email market but you have to do it well, or else it’s not going to work.
Ensuring that they’re in the right place is done through a number of things. You need to have outreached to them. The messaging at the front of the clinic needs to be the same from the therapist. The therapist needs to be hitting on what’s most important to the patient: their goals and their reason for coming.
Third is you have to identify within your patients or customers who’s happy and who’s not, including those in the middle. You need to leverage those who are happy. You need to be able to use them to help improve your SEO.
You’ll be doing this face-to-face and not through email as it doesn’t work. If you’re doing great with email, you’ll get a 20-25% response, which means 75% of the people won’t be participating. That’s atrocious and horrible.
If you have any questions, please type them down below. I will come up to take a look and will answer them.
Fourth is you have make the unhappy patients, including those in the middle, move up a category. They are considered drop offs. If we were able to identify them ahead of time, our goal is to make them move up a category and eventually turn them into happy patients.
How do you do that? Show them that you care. Show them that you actually give a prep about them as a person. You outreach to them. You send them text messages and voicemails. I’m not saying that you don’t have to do other stuff. We built a system that actually does all of this. We nurture them as happy patients.
Fifth is you ask for the referral. The key is you don’t want to ask neither happy nor unhappy patients for referral. It actually makes them go the other way and makes them a little less happy because they weren’t sure about you in the first place and you’re asking them to refer their friends. It’s not really attractive for them.
We only want to ask the happy patients. While we ask the unhappy patients to return, we ask the happy patients for referral. This is pure gold in your practice. This is where all of the growth in the money happens. This all happens with happy patients. Happy patients have better outcomes, too. It’s all part of being happy.
You need to track this. You need to measure and see where they are. You need to create a system that makes this happen for your practice. We have done that. If you’re interested in learning about that, just let me know. Everyone in the Drop the Drop Offs Group can absolutely do it.
This comes back to what we’ve discussed earlier: 80% of your money comes from 20% of past patients. That’s a passive number. What if you’re active and asking the happy patients for referral? What happens to the percentages? Those numbers will move up. That’s where we get our huge growth. That’s where massive growth happens for your practice.
Right now, a lot of people seemed to be shoveling more coal into the engine of the train to achieve their goal of having a successful practice when it’s derailing behind them. You’ll get faster if you stop the trains from derailing than shoveling more coal to have power to get to the end. If your train is derailing, they’re coming off the rails and your business is walking away with 75% of your people leaving. You have to fix that.
That is your biggest leverage point. You will make over 10 times more on that than you will on any front end marketing, no matter how good it is.
You have to ask for referral from your past patients. You have to know when to ask such as special events or whenever you are doing things. You need to ask these people to help you with the referral and improving your SEO or Facebook score. Don’t do this through email. They know it’s not real. Do it face-to-face.